Dubai Government announced a new savings scheme for expats working in the public sector. Currently, a gratuity is offered to employees at the end of their service across the UAE.
Here is all you need to know about the saving scheme announced in Dubai
What is the new savings scheme?
It is the first of its kind in the region that provides employees with a number of financial benefits. The initiative will:
- Enhance end-of-service indemnities in the Government of Dubai
- Provide a series of investment mechanisms in line with employees’ preferences, including Sharia-compliant ones
- Offer guaranteed capital protection for employees who do not wish to invest.
- Deposit financial dues starting from the date of plan enrolment.
- Study the extent to which this system can be voluntarily applied to private sector employees in Dubai, following coordination with relevant federal and local entities.
Who is it for?
It’s for employees of the public sector in Dubai. The system may be voluntarily applied to private sector employees in the Emirate as well, following coordination with relevant federal and local entities.
What are its objectives?
- Ensure and protect the rights of employees and provide them with opportunities to develop their savings and end-of-service dues.
- Attract the best talent and enhance the flexibility and attractiveness of the labour market in Dubai.
- Drive financial literacy and foster a culture of saving among employees to assist in creating a financial plan that serves their future.
Who manages it?
The savings scheme is managed by a board of trustees and international investment institutions, under the supervision of the Dubai International Financial Centre.
News Source: Khaleej Times